Indonesia urges BYD to raise local sourcing, investment and hiring
The industry minister said BYD had expressed readiness to lift its use of domestic components to 60 per cent by 2027.
Indonesia's Industry Minister Muhammad Sarmuji has called on BYD to use more Indonesian components, increase realised investment and employ more local workers. He made the appeal while visiting the Chinese carmaker's manufacturing facility in Subang, West Java.
Sarmuji said greater domestic sourcing would bring more Indonesian businesses and suppliers into electric vehicle production, adding value to the economy. According to the minister, BYD had indicated it was ready to raise domestic component use to 60 per cent by 2027.
He also pointed to BYD's plans for EV battery plants, saying they aligned with government efforts to develop the battery-powered vehicle industry using domestic resources. Sarmuji intends to visit the company's headquarters in China to seek commitments on local content, investment and employment.
BYD Motor Indonesia spokesperson Luther Panjaitan said the company had invested Rp11 trillion in its Subang factory, which occupies 126 hectares and can produce 150,000 vehicles annually. He said the facility is connected to a toll road and Patimban Port.
Panjaitan put the current workforce at approximately 6,000, with employment expected to reach 20,000 when the factory operates at full capacity. He said BYD had established partnerships with more than 200 Indonesian suppliers providing items including tyres, glass and braking components.
The company also plans to develop flash-charging infrastructure rated at 1.5 million watts, Panjaitan said.
